Free Washington D.C. Real Estate Practice Exam

Q1.The Equal Housing Opportunity logo or slogan should appear:

• A.Only on for-sale signs
• B.Only when advertising to minority communities
• C.On all real estate advertising as a best practice recommended by HUD
• D.Only when required by the local MLS

Q2.Which situation would most likely create a conflict of interest for a real estate agent?

• A.Representing multiple buyers looking at different properties
• B.Showing a buyer client properties listed by other agents
• C.Having a personal financial interest in a property they're showing to a client
• D.Working with both first-time and experienced buyers

Q3.A purchase contract includes an inspection contingency that allows the buyer to terminate 'if not satisfied with the property condition.' This type of contingency is considered:

• A.Void as too vague to enforce
• B.A subjective contingency giving the buyer broad discretion
• C.An objective contingency requiring specific defects
• D.Invalid without professional inspection requirements

Q4.Under DC regulations, trust account records must be maintained for how long after a transaction closes?

• A.2 years
• B.3 years
• C.5 years
• D.7 years

Q5.A commercial property generates $15,000 per month in rental income. Annual operating expenses total $75,000. What is the property's gross rent multiplier if it sold for $1,800,000?

• A.10
• B.24
• C.120
• D.15

Q6.When using the cost approach, which of the following would NOT be included in the site value?

• A.Land preparation and grading costs
• B.Utility connections to the street
• C.Building foundation costs
• D.Site surveying costs

Q7.The Fair Housing Act's disability provisions require reasonable accommodations. Which situation would most likely be considered a reasonable accommodation request?

• A.Installing an elevator in a two-story building
• B.Allowing a service animal in a no-pets building
• C.Providing 24-hour nursing care
• D.Reducing rent due to disability

Q8.Which of the following best describes 'liquidated damages' in a real estate purchase contract?

• A.Damages determined by a court after trial
• B.The actual monetary losses proven by the injured party
• C.A predetermined amount agreed upon by the parties in the contract
• D.Damages that must be paid immediately upon breach

Q9.A purchase agreement contains a provision stating 'This contract is contingent upon the buyer obtaining financing at an interest rate not to exceed 6%.' If current market rates are 7%, what is the status of this contingency?

• A.The contingency is automatically waived
• B.The buyer can terminate the contract without penalty
• C.The seller must reduce the purchase price
• D.The contingency is void as unrealistic

Q10.In a government survey legal description reading 'SW 1/4 of NE 1/4 of Section 16, T3N, R2W,' how many acres does this parcel contain?

• A.10 acres
• B.20 acres
• C.40 acres
• D.160 acres

Q11.Under the Equal Credit Opportunity Act (ECOA), which of the following is prohibited when evaluating a loan application?

• A.Considering the applicant's employment history
• B.Requiring disclosure of marital status for joint applications
• C.Asking about plans to have children
• D.Verifying the applicant's income sources

Q12.A federal fair housing complaint must be filed with HUD within:

• A.30 days of the alleged discriminatory act
• B.180 days of the alleged discriminatory act
• C.One year of the alleged discriminatory act
• D.Two years of the alleged discriminatory act

Q13.Under DC regulations, earnest money deposits must be placed in a trust account within how many business days of acceptance?

• A.2 business days
• B.3 business days
• C.5 business days
• D.10 business days

Q14.Under the Equal Credit Opportunity Act (ECOA), which factor may a lender legally consider when evaluating a loan application?

• A.The applicant's marital status when applying for individual credit
• B.The applicant's debt-to-income ratio and credit history
• C.The applicant's plans for having children in the future
• D.The racial composition of the neighborhood where the property is located

Q15.Under RESPA, which settlement service provider is prohibited from giving or receiving referral fees?

• A.Real estate brokers only
• B.Mortgage lenders only
• C.Title insurance companies only
• D.All settlement service providers